I've been into it my whole life, but im only 19 so I don't rember ever seeing prices for a new Loco that low. I have a pretty good size HO layout in my basement That me and my dad have been building for about 5 years.
I usually expect to pay $90 - $120 for a new Loco, but I have paid way more than that for DCC with Sound Equipped ones. Those range from $150 to upwards of $300.
DCC is the big thing, its basically a small computer chip inside the locomotive that recieves a signal through the track from a throttle. The days of using tranformers to regulate power on the track are gone for me, this allows multple Locos to be run on the same track at different speeds and has all kind of neat tricks.
I can't say much about the scenery aspect as thats my Dad's type of thing, but I do know that the best way to do scenery is make your own. The biggest piece on my layout is the Mountain my dad made with some spray-on foam and paint 20 years ago for his O gaugue layout.
Yes the hobby is more expensive, but the things you can do know with it are truly only limited by your imagination.
P.S> If you happen to live In New England or are up for a trip, this weekend in Springfield, Massachusetts is one of the biggest train shows around at the Big E. 4 large buildings filled with trains. Its a good place to see whats new with the Hobby.